Fitch Affirms University of North Texas System (TX) Short-Term Rating at
'F1+'

April 15, 2013 06:30 PM Eastern Daylight Time

NEW YORK--(BUSINESS WIRE)--Fitch Ratings has affirmed the rating on the Board of Regents of the
University of North Texas' (UNT) $100 million tax-exempt and taxable
commercial paper (CP) program at 'F1+'.

SECURITY

All legally available revenues, funds and balances of UNT.

KEY RATING DRIVERS

SUFFICIENT LIQUID RESOURCES: The 'F1+' rating is based on UNT's ability
to cover the maximum potential liquidity requirement of its CP program
by a minimum of 1.25x from internal, highly liquid resources. As of Feb.
28, 2013, UNT's financial resources covered its CP program by 2.68x.

MATERIAL DECLINE IN LIQUID INVESTMENTS: The 'F1+' rating could be
negatively affected by a decline in available resources to a level that
resulted in less than the minimum 1.25x coverage required under Fitch's
'Criteria for Assignment Short-Term Ratings Based on Self Liquidity'.

The UNT system consists of the University of North Texas at Denton;
University of North Texas at Dallas; University of North Texas Health
Science Center at Fort Worth; University of North Texas at Dallas
College of Law; and the System Administration. Total headcount
enrollment across the system was 39,764 in fall 2012, or 0.7% over the
prior year and 10.9% above fall 2008.

The 'F1+' rating is based on the availability of adequate, highly
liquid, highly rated securities to cover the liquidity demand presented
by UNT's CP program. Under the current Board authorization, CP notes may
be issued up to $100 million, of which $75 million is to be tax-exempt
and $25 million taxable. Fitch defines the maximum potential liquidity
requirement as maximum authorized CP. UNT does not have any outstanding
variable-rate demand obligations or any other forms of puttable debt.

As of Feb. 28, 2013, UNT's liquid investments, consisting primarily of
money market funds and local government investment pools, totaled
approximately $268.2 million (after discounts based on asset type and
maturity per Fitch's short-term rating criteria). These liquid assets
would cover UNT's full $100 million of authorized taxable and tax-exempt
CP ($33.5 million presently outstanding) by a strong 2.68x, exceeding
the 1.25x coverage Fitch expects for an 'F1+' rating.

UNT maintains a liquidation procedures plan to manage a failed rollover
or marketing. The plan delineates the specific timing sequences,
procedures for liquidation, and authorized personnel responsible for
these steps. Fitch views favorably the presence of such a plan as it
reflects management's commitment to the timely redemption of maturing CP
notes.

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND
DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING
THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS.
IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE
AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'.
PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS
SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS
OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES
AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF
THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE
RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR
RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY
CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH
WEBSITE.